Taking over from Walmart, Temu and SHEIN become Amazon’s new “rivals”!

Taking over from Walmart, Temu and SHEIN become Amazon’s new “rivals”!

As a veteran platform in the e-commerce industry, Amazon has been competing with Walmart and Target for decades. However, with the arrival of Chinese e-commerce platforms SHEIN and Temu, this situation has changed.

 

According to foreign media reports, SHEIN and Temu have made significant progress in the United States in less than two years by supplying low-priced goods directly to consumers from China. There are signs that the two platforms have already shown signs of "cannibalizing" Amazon's business.

 

According to Sensor Tower data, since its overseas launch in September 2022, the number of Temu users has grown to 51.4 million in January, and SHEIN users have also increased from 20.9 million to 26 million in January this year. Amazon's users have dropped from 69.6 million in September last year to 67 million.

 

Recently, Amazon's US site launched its first spring promotion. Some media speculated that Amazon hoped to use the platform's "reliability" and "fast delivery" to counter the "low-price" offensive of SHEIN and Temu - packages from these two platforms take 6 to 20 days to arrive from China to the United States, but Amazon's packages can arrive on the same day at the earliest.

 

However, Amazon said that the company has not seen a decline in usage, and mentioned that although the company is very concerned about its competitors, it is more concerned about user needs.

 

Compared with other e-commerce platforms, Amazon's delivery speed is much faster. In 2023, the company provided services to Prime members at the fastest speed in the world. In the United States alone, 4 billion items were delivered on the same day or the next day.

Of course, new platforms like Temu also face huge challenges in the United States, including thousands of customer complaints.

 

Part of it is about user data security: According to information, Temu is now defending two lawsuits that accuse its apps of "installing dangerous malware and spyware" on users' phones and collecting customer personal information, including biometric data. However, Temu denies such allegations.

 

Another part is product quality issues: the Better Business Bureau has also received 1,900 customer complaints, including complaints about undelivered packages or product quality issues. However, a BBB spokesperson said that Temu has been working with the organization to resolve these complaints .

 

It is worth mentioning that there was news that Temu invested a lot of money in advertising last year in order to enter the US market. According to people familiar with the matter, Temu spent more than 2 billion on Meta alone; according to expenditure, Temu was among the top five advertisers of Google last year.

Temu

SHEIN

Amazon

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